5 U.S.C. § 8418 — Survivor elections; deposit; offsets

Page 1128 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8417 ity under section 8445 (or of the last such sur- viving former spouse, if there was more than one), a reduction in the current annuity of the retired employee or Member, in accordance with section 8419(a). (2) The election and reduction shall take effect the first day of the first month beginning 9 months after the date of marriage. Any such election to provide a survivor annuity for an in- dividual— (A) shall prospectively void any election made by the employee or Member under sec- tion 8420 with respect to such individual; or (B) shall, if an election was made by the em- ployee or Member under section 8420 with re- spect to a different individual, prospectively void such election if appropriate written appli- cation is made by such employee or Member at the time of making the election under this subsection. (d)(1) An employee or Member— (A) who is married on the date of retiring under this chapter, and (B) with respect to whose spouse a waiver under subsection (a) has been made, may, during the 18-month period beginning on such date, elect to have a reduction made under section 8419 in order to provide a survivor annu- ity under section 8442 for such spouse. (2)(A) An election under this subsection shall not be effective unless the amount described in subparagraph (B) is deposited into the Fund be- fore the expiration of the 18-month period re- ferred to in paragraph (1). (B) The amount to be deposited under this sub- paragraph is equal to the sum of— (i) the difference (for the period between the date on which the annuity of the former em- ployee or Member commences and the date on which reductions pursuant to the election under this subsection commence) between the amount paid to the former employee or Mem- ber from the Fund under this chapter and the amount which would have been paid if such election had been made at the time of retire- ment; and (ii) the costs associated with providing for the election under this subsection. The amount to be deposited under clause (i) shall include interest, computed at the rate of 6 percent a year. (3) An annuity which is reduced pursuant to an election by a former employee or Member under this subsection shall be reduced by the same percentage as was in effect under section 8419 as of the date of the employee’s or Member’s retire- ment. (4) Rights and obligations under this chapter resulting from an election under this subsection shall be the same as the rights and obligations which would have resulted had the election been made at the time of retirement. (5) The Office shall inform each employee and Member who is eligible to make an election under this subsection of the right to make such election and the procedures and deadlines appli- cable in making any such election. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 528.) § 8417. Survivor reduction for a former spouse (a) If an employee or Member has a former spouse who is entitled to a survivor annuity as provided in section 8445, the reduction described in section 8419(a) shall be made. (b)(1) An employee or Member who has a former spouse may elect, under procedures pre- scribed by the Office, a reduction in the annuity of the employee or Member under section 8419(a) in order to provide a survivor annuity for such former spouse under section 8445. (2) An election under this subsection shall be made at the time of retirement or, if the mar- riage is dissolved after the date of retirement, within 2 years after the date on which the mar- riage of the former spouse to the employee or Member is so dissolved. (3) An election under this subsection— (A) shall not be effective to the extent that it— (i) conflicts with— (I) any court order or decree referred to in section 8445(a) which was issued before the date of such election; or (II) any agreement referred to in such section 8445(a) which was entered into be- fore such date; or (ii) would cause the total of survivor annu- ities payable under sections 8442 and 8445, re- spectively, based on the service of the em- ployee or Member to exceed the amount which would be payable to a widow or wid- ower of such employee or Member under such section 8442 (determined without regard to any reduction to provide for an annuity under such section 8445); and (B) shall not be effective, in the case of an employee or Member who is then married, un- less it is made with the spouse’s written con- sent. The Office shall by regulation provide that sub- paragraph (B) may be waived for either of the reasons set forth in section 8416(a)(2). (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 530.) § 8418. Survivor elections; deposit; offsets (a)(1) An individual who makes an election under subsection (b) or (c) of section 8416 or sec- tion 8417(b) which is required to be made within 2 years after the date of a prescribed event shall deposit into the Fund an amount determined by the Office (as nearly as may be administratively feasible) to reflect the amount by which the an- nuity of such individual would have been re- duced if the election had been in effect since the date of retirement (or, if later, and in the case of an election under such section 8416(b), since the date the previous reduction in the annuity of such individual was terminated under para- graph (1) or (2) of section 8419(b)), plus interest. (2) Interest under paragraph (1) shall be com- puted at the rate of 6 percent a year. (b) The Office shall, by regulation, provide for payment of the deposit required under sub- section (a) by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the Page 1129 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8420 present value of the future reduction is actuari- ally equivalent to the deposit required under subsection (a), except that the total reductions in the annuity of an employee or Member to pay deposits required by this section shall not ex- ceed 25 percent of the annuity computed under section 8415 or section 8452, including adjust- ments under section 8462. The reduction required by this subsection, which shall be effective at the same time as the election under section 8416(b) and (c) or section 8417(b), shall be perma- nent and unaffected by any future termination of the marriage or the entitlement of the former spouse. Such reduction shall be independent of and in addition to the reduction required under section 8416(b) and (c) or section 8417(b). (c) Subsections (a) and (b) shall not apply if— (1) the employee or Member makes an elec- tion under section 8416(b) or (c) after having made an election under section 8420; and (2) the election under such section 8420 be- comes void under subsection (b)(3) or (c)(2) of such section 8416. (d) The Office shall prescribe regulations under which the survivor of an employee or Member may make a deposit under this section. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 530; amended Pub. L. 103–66, title XI, § 11004(b), Aug. 10, 1993, 107 Stat. 412.) Editorial Notes AMENDMENTS 1993—Subsec. (a)(1). Pub. L. 103–66, § 11004(b)(1), struck out ‘‘, before the expiration of the 2-year period in- volved,’’ after ‘‘into the Fund’’. Subsec. (b). Pub. L. 102–66, § 11004(b)(2), amended sub- sec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘If the electing individual does not make the deposit required under subsection (a), the Office shall collect such amount by offset against such indi- vidual’s annuity, up to a maximum of 25 percent of the net annuity otherwise payable, and the individual is deemed to consent to such offset.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 effective on first day of first month beginning at least 30 days after Aug. 10, 1993, and applicable to all deposits required under sec- tion 8339(j)(3) or (5), 8339(k)(2), or 8418 of this title, on which no payment has been made prior to such effec- tive date, with provision for partial deposit, see section 11004(c) of Pub. L. 103–66, set out as a note under section 8339 of this title. § 8419. Survivor reductions; computation (a)(1) Except as provided in paragraph (2), the annuity of an annuitant computed under section 8415, or under section 8452 (including subsection (a)(2) of such section, if applicable) or one-half of the annuity, if jointly designated for this pur- pose by the employee or Member and the spouse of the employee or Member under procedures prescribed by the Office of Personnel Manage- ment, shall be reduced by 10 percent if a sur- vivor annuity, or a combination of survivor an- nuities, under section 8442 or 8445 (or both) are to be provided for. (2)(A) If no survivor annuity under section 8442 is to be provided for, but one or more survivor annuities under section 8445 involving a total of less than the entirety of the amount referred to in subsection (b)(2) of such section are to be pro- vided for, the annuity of the annuitant involved (as computed under section 8415, or under sec- tion 8452 (including subsection (a)(2) of such sec- tion, if applicable)) or one-half of the annuity, if jointly designated for this purpose by the em- ployee or Member and the spouse of the em- ployee or Member under procedures prescribed by the Office of Personnel Management, shall be reduced by an appropriate percentage deter- mined under subparagraph (B). (B) The Office shall prescribe regulations under which an appropriate reduction under this paragraph, not to exceed a total of 10 percent, shall be made. (b)(1) Any reduction in an annuity for the pur- pose of providing a survivor annuity for the cur- rent spouse of a retired employee or Member shall be terminated for each full month— (A) after the death of the spouse; or (B) after the dissolution of the spouse’s mar- riage to the employee or Member, except that an appropriate reduction shall be made there- after if the spouse is entitled, as a former spouse, to a survivor annuity under section 8445. (2) Any reduction in an annuity for the pur- pose of providing a survivor annuity for a former spouse of a retired employee or Member shall be terminated for each full month after the former spouse remarries before reaching age 55 or dies. This reduction shall be replaced by ap- propriate reductions under subsection (a) if the retired employee or Member has one or more of the following: (A) another former spouse who is entitled to a survivor annuity under section 8445; (B) a current spouse to whom the employee or Member was married at the time of retire- ment and with respect to whom a survivor an- nuity was not waived under section 8416(a) (or, if waived, with respect to whom an election under section 8416(d) has been made); or (C) a current spouse whom the employee or Member married after retirement and with re- spect to whom an election has been made under subsection (b) or (c) of section 8416. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 531; amended Pub. L. 100–238, title I, § 131(a), Jan. 8, 1988, 101 Stat. 1759.) Editorial Notes AMENDMENTS 1988—Subsec. (a)(1), (2)(A). Pub. L. 100–238 inserted ‘‘or one-half of the annuity, if jointly designated for this purpose by the employee or Member and the spouse of the employee or Member under procedures prescribed by the Office of Personnel Management’’ before ‘‘, shall be reduced’’. § 8420. Insurable interest reductions (a)(1) At the time of retiring under section 8412, 8413, or 8414, an employee or Member who is found to be in good health by the Office may elect to have such employee’s or Member’s an- nuity (as computed under section 8415) reduced under paragraph (2) in order to provide an annu-